Which of the Following Is True of Opportunistic and Formal

question 54

Multiple Choice

Which of the following is true of opportunistic and formal planning?

• A) Firms that use only opportunistic planning will have no clear sense of direction.
• B) Formal planning should allow for creative responses within the organized framework.
• C) Jack Welch, formerly of GE, was a strong proponent of formal planning over opportunistic planning.
• D) Firms should carefully choose either formal or opportunistic planning after thoughtful consideration.

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Definitions:

Batch-Level Activities

Activities that are performed each time a batch of goods is handled or processed, regardless of how many units are in the batch. The amount of resource consumed depends on the number of batches run rather than on the number of units in the batch.

Unit-Level Activities

Tasks or processes that vary directly with the number of units produced or services provided.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities based on their use of resources.

Accounting Department

A division within a company that is responsible for managing financial records, ensuring compliance with accounting laws, and preparing financial reports.